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Government Expenditures and Economic Growth: An Analysis of Developed, Developing and Underdeveloped Countries
Abstract
This paper assess how the government
expenditures affected economic growth in developed, developing and
underdeveloped countries by using the unbalanced panel approach for the period
of 1980-2012. The results indicate that government spending has positive
significant impact on economic growth in fixed and random effect models for
underdeveloped countries, while for developed countries there is a significant
negative relationship between government expenditure and economic growth in
both fixed and random effect models. For the developing countries government
spending has negative significant impact on economic growth in case of fixed
effect model, while for the random effect model, there is positive and
insignificant relationship of government spending to economic growth.
Keywords
References
- Akitoby, B., Clements, B., Gupta, S., & Inchauste, G. (2006). Public Spending, Voracity, Wagner's Law in Developing Countries. European Journal of Political Economy, 22, 908-924.
- Alesina, A., Ardagna, S., Perotti, R., & Schiantarelli, F. (1999). Fiscal Policy, Profits, And Investments. Working Paper, 7207.
- Alexiou, C. (2009). Government Spending and Economic Growth: Econometric Evidence from the Southern Eastern Europe. Journal of Economic and Social Research, 11, 1-16.
- Arpaia, A., & Turrini, A. (2008). Government Expenditure and Economic Growth in the EU: Long-Run Tendencies and Short Term Adjustment. Economic and Financial Affairs, 1-52.
- Bader, S. A., & Abu-Qarn, A. S. (2012). Government expenditures, Military Spending, and Economic Growth: Causality Evidence from Egypt, Israel and Syria. Working paper, 1-25.
- Baldacci, E., Gupta, S., & Granados, C. M. (2013). Debt Reduction, Fiscal Adjustment, and Growth in Credit Constrained Economies. IMF Working Paper, WP/13/238.
- Barro, R. J. (1990). Government Spending in a Simple Endogenous Growth Model. Journal of Political Economy, 98, 103-125.
- Barro, R. J. (1996). Democracy and Growth. Journal of Economic Growth, 1, 1-27.
Details
Primary Language
English
Subjects
-
Journal Section
Research Article
Publication Date
April 12, 2018
Submission Date
January 31, 2018
Acceptance Date
February 11, 2018
Published in Issue
Year 2018 Volume: 6 Number: 4
APA
Ağırman, E., & Yılmaz, Ö. (2018). Government Expenditures and Economic Growth: An Analysis of Developed, Developing and Underdeveloped Countries. Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi, 6(4), 519-529. https://doi.org/10.18506/anemon.385016
AMA
1.Ağırman E, Yılmaz Ö. Government Expenditures and Economic Growth: An Analysis of Developed, Developing and Underdeveloped Countries. Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi. 2018;6(4):519-529. doi:10.18506/anemon.385016
Chicago
Ağırman, Ensar, and Ömer Yılmaz. 2018. “Government Expenditures and Economic Growth: An Analysis of Developed, Developing and Underdeveloped Countries”. Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi 6 (4): 519-29. https://doi.org/10.18506/anemon.385016.
EndNote
Ağırman E, Yılmaz Ö (August 1, 2018) Government Expenditures and Economic Growth: An Analysis of Developed, Developing and Underdeveloped Countries. Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi 6 4 519–529.
IEEE
[1]E. Ağırman and Ö. Yılmaz, “Government Expenditures and Economic Growth: An Analysis of Developed, Developing and Underdeveloped Countries”, Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi, vol. 6, no. 4, pp. 519–529, Aug. 2018, doi: 10.18506/anemon.385016.
ISNAD
Ağırman, Ensar - Yılmaz, Ömer. “Government Expenditures and Economic Growth: An Analysis of Developed, Developing and Underdeveloped Countries”. Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi 6/4 (August 1, 2018): 519-529. https://doi.org/10.18506/anemon.385016.
JAMA
1.Ağırman E, Yılmaz Ö. Government Expenditures and Economic Growth: An Analysis of Developed, Developing and Underdeveloped Countries. Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi. 2018;6:519–529.
MLA
Ağırman, Ensar, and Ömer Yılmaz. “Government Expenditures and Economic Growth: An Analysis of Developed, Developing and Underdeveloped Countries”. Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi, vol. 6, no. 4, Aug. 2018, pp. 519-2, doi:10.18506/anemon.385016.
Vancouver
1.Ensar Ağırman, Ömer Yılmaz. Government Expenditures and Economic Growth: An Analysis of Developed, Developing and Underdeveloped Countries. Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi. 2018 Aug. 1;6(4):519-2. doi:10.18506/anemon.385016
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